CA AB2059

Amends Section 21608.5 of the Business and Professions Code to allow junk dealers and recyclers to exempt nonferrous material purchases from cash/check payment requirements if they carry a surety bond of at least $100,000 covering all locations, exclusively for reimbursing stolen scrap metal losses and law enforcement investigation costs.

Defines recoverable losses under the surety bond as damages specified in Civil Code Sections 3333, 3336, and 3336.5, and clarifies that surety bond reimbursements do not constitute admission of culpability for criminal activity.

Requires the California Research Bureau to report to the Legislature by June 1, 2019 on the impact of the surety bond exemption on metal theft reduction and elimination efforts.

Sunset provision: The surety bond exemption remains in effect only until January 1, 2020, after which the original cash/check payment requirements are restored, effective January 1, 2020.

Maintains existing requirements for junk dealers and recyclers including written records, seller identification and photographs, thumbprints, and two-year record retention; continues existing exemptions for high-volume sellers (5+ transactions per month) and business-to-business transactions.